Cryptocurrency regulation abroad

If you're about to enter the world of crypto-currencies, you're probably wondering which countries accept and tolerate the new Web3 technologies. More generally, what are the crypto regulations abroad. This article takes as an example three countries that can be useful and decisive in the world of finance. These countries are Switzerland, the United States of America and El Salvador.

Swiss cryptocurrency regulations

When it comes to financial regulation, Switzerland is one of the first countries that springs to mind. This powerful country occupies a position of economic leadership, with one of the world's highest per capita GDPs, and its actions are consequently seen as an example to follow. As such, it's worth taking a look at its vision of cryptocurrencies.

In 2022, in Switzerland, the situation has changed. The Swiss government introduced measures to create a legal framework for businesses to use crypto-currencies. Today, only the canton of Zug allows the use of Ethereum and Bitcoin for tax payments. This canton has become the symbol of the development of Switzerland's so-called “Crypto Valley”. This implies that the country was perhaps ready to open up to the world of crypto-currencies at the time. The Swiss Financial Market Supervisory Authority (FINMA) has assessed that it wants to change things. It recently changed its regulations on the use of crypto-currencies to create a legal framework around them. It explained its new regulations and what is required for the legal use of crypto-currencies in its transactions. This is a big step forward in a globalized world where Web3 technologies are booming. Where, moreover, it has become virtually indispensable to adapt to the leading-edge functionalities that are being developed on a daily basis.

How are cryptocurrencies regulated in the United States?

The United States has a very complex way of operating, so it's quite difficult to deal with its cryptocurrency regulations. That's why I suggest we focus on a few states where it would be interesting to establish a foothold. Not least thanks to a more open attitude to Web3 technologies. In the United States, the Securities and Exchange Commission(SEC) is the body that oversees the regulatory framework for cryptocurrencies.

For example, the State of New York accepts the use of cryptocurrencies if you have a license from BitLicense. It gives you the right to make the most of Bitcoin, Ethereum, Solana…. This license can be difficult to obtain. However, once you have it, your business will be able to grow thanks to the financial emulation of New York City and the surrounding area.

In Washington State, “virtual currency”, as defined in The Revised Code of Washington, is legal tender. It's true that a license is required, but it's not complicated to obtain, which is a good thing. Knowing that such a state has this opinion on the use of cryptocurrencies gives us hope. Perhaps in the future, other states will follow suit by regulating them more openly.

Is El Salvador a cryptocurrency-friendly country?

Over the past two years, El Salvador has made headlines for its acceptance of Bitcoin. Indeed, in 2021, the country passed a law allowing Salvadorans to pay in Bitcoin. This decision made it the very first country to legalize a cryptocurrency. President Bukele stressed the need to look to the future and invest in new technologies.

El Salvador demonstrates that a country can accept cryptocurrencies and establish legal procedures for their widespread use. Furthermore, last January, Bukele tweeted about approving a new digital security law. He wanted to attract new investors and really get closer to the world. In the same tweet, he urged his followers to “move forward, always forward…”.

This is a good example of the fact that there are several players in the cryptocurrency world. Politicians are in a sense the ones who can have one of the biggest impacts. They can take part in regulating and promoting the acceptance of cryptocurrencies. El Salvador, for example, would never have been in the vanguard if it hadn't had such a leader.Three countries and yet a multitude of ways of thinking about cryptocurrencies! That's why, when you start researching the world of Web3, you need to be patient and try to take an in-depth look. All this while bearing in mind that the situation can change very quickly.